SPRINGFIELD, Ill., Sept. 22 /PRNewswire/ -- CIPSCO Incorporated (NYSE: CIP) today reported consolidated earnings of $.56 per share of common stock for the month of August, up 27 cents per share from earnings of $.29 in the same month a year earlier.
Clifford L. Greenwalt, president and chief executive officer, said earnings growth primarily reflects hot and humid summer weather which led to increased electric sales to customers of Central Illinois Public Service Co., CIPSCO's principal subsidiary.
Greenwalt said August weather conditions were 103 percent hotter than in 1992 and 22 percent above normal, as measured by cooling degree days. As a result, electric kilowatthour sales in August were 65 percent higher than a year ago.
The extreme weather led to a new peak demand on the CIPS system of 2,165 megawatts (unaudited) recorded Aug. 27. The new peak was 2.7 percent higher than the previous record 2,108 megawatts recorded Aug. 17, 1988.
In addition, August revenues from electric interchange sales to other utility systems were $16.2 million, or $8.6 million higher than a year ago, reflecting much greater opportunity to make such sales. Greenwalt said a number of other utilities were buyers of electricity due to the hot weather, flooding conditions along the Mississippi River which limited some power stations' availability, and coal strikes which hampered deliveries of coal at other utilities.
Electric revenues of $81.4 million in August 1993 were up $24.7 million, or 44 percent. Natural gas revenues were $5.4 million, essentially level with a year earlier. Total operating revenues were $88.9 million for the month compared with $62.5 million a year earlier.
For the 12 months ending Aug. 31, 1993, CIPSCO reported consolidated earnings per share of $2.51, or 26 percent higher than the $1.99 earned for the comparable period a year earlier. For the 12 months, operating revenues were $831.7 million, up from $714.0 million a year earlier. Of the increase, $46.1 million was attributable to increased interchange sales to other utility systems.
Financial Results of CIPSCO Incorporated and Subsidiaries
1993 1992
One Month ended Aug. 31
Operating Revenues (000) $ 88,943 $ 62,543
Net Income (000) $ 19,212 $ 9,947
Average Shares (000) 34,108 34,108
Earnings per Average Share $ .56 $ .29
12 Months ended Aug. 31
Operating Revenues (000) $831,674 $714,035
Net Income (000) $ 85,731 $ 67,901
Average Shares (000) 34,108 34,126
Earnings per Average Share $ 2.51 $ 1.99
CIPSCO INCORPORATED AND SUBSIDIARIES
SPRINGFIELD, ILLINOIS
Consolidated Statements of Income
(in thousands)
(unaudited)
Eight Months Ended
Aug. 31,
1993 1992
Operating Revenues:
Electric $476,545 $396,327
Provision for revenue refunds --- 1,646(A)
Total 476,545 397,973
Gas 92,348 77,920
Investment 6,498 7,702
Total operating revenues 575,391 483,595
Operating Expenses:
Fuel for electric generation 126,284 117,516
Purchased power 43,628 10,630
Gas purchased 57,637 47,182
Other operation 90,009 85,403
Maintenance 41,854 40,975
Depreciation 52,096 49,231
Taxes other than income taxes 37,692 35,610
Total operating expenses 449,200 386,547
Operating Income 126,191 97,048
Interest and Other Charges:
Interest on long-term debt of
subsidiary 23,263 24,567
Interest on provision for revenue
refunds --- (803)(A)
Other interest charges 476 114
Allowance for funds used during
construction (AFUDC) (1,443) (2,259)
Preferred dividend requirements of
subsidiary 2,504 3,278
Miscellaneous, net (2,027) (5,476)
Total interest and other charges 22,773 19,421
Income Before Income Taxes 103,418 77,627
Income Taxes 40,090 27,531
Net Income $ 63,328 $ 50,096
Average Shares of Common Stock
Outstanding 34,108 34,108
Earnings Per Average Share of Common
Stock $ 1.86 $ 1.47
Twelve Months Ended
Aug. 31,
1993 1992
Operating Revenues:
Electric $674,190 $582,676
Provision for revenue refunds --- (2,224)(A)
Total 674,190 580,452
Gas 148,184 121,333
Investment 9,300 12,250
Total operating revenues 831,674 714,035
Operating Expenses:
Fuel for electric generation 181,312 164,432
Purchased power 54,092 21,874
Gas purchased 93,007 74,486
Other operation 135,914 124,949
Maintenance 64,970 62,608
Depreciation 77,035 72,837
Taxes other than income taxes 53,215 52,962
Total operating expenses 659,545 574,148
Operating Income 172,129 139,887
Interest and Other Charges:
Interest on long-term debt of
subsidiary 35,094 36,897
Interest on provision for revenue
refunds --- 733(A)
Other interest charges 760 278
Allowance for funds used during
construction (AFUDC) (2,409) (3,328)
Preferred dividend requirements of
subsidiary 3,776 5,036
Miscellaneous, net (4,134) (8,559)
Total interest and other charges 33,087 31,057
Income Before Income Taxes 139,042 108,830
Income Taxes 53,311 40,929
Net Income $ 85,731 $ 67,901
Average Shares of Common Stock
Outstanding 34,108 34,126
Earnings Per Average Share of Common
Stock $ 2.51 $ 1.99
This unaudited information reflects, in the opinion of the company, all adjustments necessary to present fairly the results for the respective periods. Results of the interim periods are not necessarily indicative of the results for any 12-month period due to the seasonal nature of the utility business of Central Illinois Public Service Company (CIPS). This information is not given in connection with any sale or offer to buy any security.
(A) -- As a result of the Tax Reform Act of 1986, certain electric revenues were collected from March 1, 1987, through March 1992, subject to refund. The Illinois Commerce Commission entered an order in May 1992 approving a settlement agreement reached by CIPS, the Illinois commission staff and other intervenors. The order required CIPS to refund a total of $73 million of electric revenues (which included accrued interest) to customers over a six-month period in 1992 in complete settlement of the issue. The total liability recorded by CIPS for revenue refunds exceeded the settlement agreement amount by $5.4 million resulting in $3.3 million (net of taxes) or $.10 per share favorable impact on earnings during 1992. Refunds of the electric revenues began in July 1992 and continued through December 1992.
-0- 9/22/93
/CONTACT: Jim Goff of CIPSCO, 217-525-5547/
(CIP)

CO: CIPSCO Incorporated ST: Illinois IN: UTI SU: ERN

AR -- CL020 -- 4947 09/22/93 18:59 EDT

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